Clinton urged Walters to take time off and enjoy life.
But Walters wanted to know if Clinton would run for president.
"I'm running – around the park," Clinton replied. She also plugged "Hard Choices," her new book about being secretary of state.
The episode taped Thursday, but aired Friday on ABC.
In a zany segment, Cheri Oteri played Walters interviewing the real Walters. Real Babs asked if there were any regrets about creating "The View."
"Little did I know that I would be surrounded by four cackling hens all speaking over each other where I couldn't get a word in edgewise," Oteri said. "A far cry from my respected work on the ABC News program '20/20.' "
Winfrey said she had to be there to celebrate Walters. "You have literally meant the world to me," Winfrey said.
Winfrey thanked Walters for being the pioneer for women in TV, for having the courage to keep going and for displaying stamina. Winfrey also urged Walters to take a rest.
Winfrey later introduced Diane Sawyer, Connie Chung, Katie Couric, Jane Pauley, Joan Lunden, Meredith Vieira, Robin Roberts, Maria Shriver, Deborah Norville, Paula Zahn, Savannah Guthrie and others. They saluted Walters for paving the way for women in television.
"This is my legacy," Walters said.
Douglas praised Walters as an extraordinary person who gives great parties. He explained how she leads conversations by bringing up a topic and going around the table to get each guest's take.
ABC will offer a two-hour tribute to Walters at 9 p.m. Friday (tonight) on WFTV-Channel 9. Winfrey introduced a clip that explained how Walters had a difficult time co-anchoring the evening news with Harry Reasoner at ABC. Walters credited her prime-time specials with saving her career after that flop.
At the show's end, Walters thanked viewers for their support and said she would see them later. She also plugged the prime-time special about her. Promoting herself was one of Walters' greatest skills, but she is a towering figure in TV history.